Amazon’s stock is set for a great 2026, driven by two fast-growing segments: Amazon Web Services, with 20% revenue growth in Q3, and advertising services, with 24% revenue growth. AWS contributed $11.43 billion in operating income, highlighting its profitability. These divisions are boosting Amazon’s profits faster than revenue, making it a compelling investment.
Operating income of $17.4 billion in Q3 saw AWS contribute 66%, showcasing its profitability compared to commerce divisions. Advertising services, Amazon’s fastest-growing segment, has a 24% revenue increase. With operating margins potentially rivaling AWS, Amazon’s profit growth surpasses revenue growth, setting the stage for a strong 2026.
Investors should consider Amazon’s rising margins and strong growth in advertising and AWS for potential investment. While Amazon may not have been the best investment in 2025, the outlook for 2026 looks promising. The company’s profit growth story, driven by high-margin segments, positions it for success in the coming year.
Joining Stock Advisor could provide insights into the 10 best stocks to invest in now. With historical examples like Netflix and Nvidia showcasing significant returns, Stock Advisor’s average return of 1,035% outperforming the S&P 500 at 191%, it’s worth exploring investment opportunities beyond Amazon. Don’t miss out on potential monster returns with the latest stock recommendations.
Read more at Nasdaq: 2 Hidden Reasons Why Amazon Will Crush the Market in 2026
